Your First Home: The New Government Scheme Explained
Saving enough money for a deposit can be one of the biggest challenges when buying your first home.
The government has now announced plans for a new scheme called Your First Home, which is expected to help eligible first-time buyers purchase a new-build home with a deposit of just 2.5%.
Although the full details are still to come, the announcement could be welcome news for people who feel that owning a home is just beyond their reach.
Here is what we know so far, what still needs to be confirmed and why you may not need to wait before starting your search for a first home.
What is the Your First Home scheme?
Your First Home is a proposed government-backed equity loan scheme for first-time buyers in England.
Based on the initial announcement, the scheme is expected to allow eligible buyers to purchase a qualifying new-build home using:
- A deposit of at least 2.5% from the buyer
- A 20% government-backed equity loan
- A mortgage for the remaining amount
The equity loan will have an initial interest-free period. The government says this could help reduce monthly costs compared with purchasing the same home using a 95% mortgage.
Only new-build homes from developers signed up to the scheme are expected to qualify.
How could the scheme work?
Using a new-build home priced at £250,000 as an illustration, the purchase could potentially be funded with:
- A buyer deposit of £6,250
- A government-backed equity loan of £50,000
- A mortgage of £193,750
This would reduce the amount the buyer needs to provide as a deposit and the amount borrowed through their main mortgage.
These figures are illustrative and are based on the scheme as announced. Buyers would also need to budget for expenses such as legal fees, mortgage fees and moving costs.
Who could be eligible?
Your First Home is expected to be available to first-time buyers purchasing new-build homes in England from participating developers.
The government has also said that there will be:
- A household income limit
- Local property price caps
- Specific eligibility requirements
- Restrictions on which homes and developers can participate
The limits and detailed rules have not yet been published.
The government is expected to provide further information at the Autumn Budget on 28 October 2026, including details about the cost of the scheme and when it will become available.
What is still to be confirmed?
There are several important questions that still need to be answered, including:
- When applications will open
- The household income threshold
- The property price cap for each area
- How long the interest-free period will last
- What interest or fees will apply afterwards
- How and when the equity loan must be repaid
- How joint applications will be treated
- Which developers and new homes will be included
Hopkins Homes’ participation in Your First Home has not yet been confirmed. We will update our dedicated Your First Home scheme page when the government publishes the complete rules and we know whether eligible Hopkins homes can be offered through the scheme.
Do first-time buyers need to wait?
Not necessarily - Every buyer’s circumstances are different, and Your First Home may prove helpful for some people once it becomes available. However, there may already be ways to make your first move possible.
On selected Hopkins homes, we could contribute up to 5% of the home’s price towards your deposit through our Deposit Contribution scheme.
This could mean using less of your own savings towards your deposit, helping you move sooner or allowing you to keep more money aside for moving costs and making your new home your own.
Deposit Contribution is available on selected homes and developments and is subject to your mortgage lender’s criteria. It cannot be used with another Hopkins Homes offer.
Our Sales Teams can explain the assistance currently available on your preferred home and introduce you to an independent mortgage adviser if required.
Why choose a new home as your first home?
Choosing a new home can make the move into homeownership feel a little more straightforward.
There is no previous owner or onward chain to wait for, and you can move into a home designed for modern life from the very beginning. New homes are also built to current energy-efficiency standards, which can help reduce energy use and ongoing household costs compared with many older properties.
Depending on the build stage, you may also be able to choose from selected finishes and personalise your home before moving in.
Most importantly, you will have a place that is entirely your own—whether that means decorating every room your way, welcoming friends for the first time or simply enjoying the freedom of closing your own front door.
Start your search today
You do not have to put your plans on hold while the details of Your First Home are being finalised.
Explore our new homes for sale, speak to your local Hopkins Homes Sales Team and find out what support may already be available.
We will continue to follow the government’s announcement closely and update our [Your First Home scheme page] as soon as further details are confirmed.
Important information
Information about Your First Home is based on the government announcement published on 26 September 2026 and is correct as of 6 October 2026. The scheme has not yet launched and its final eligibility criteria, financial terms, participating developers, eligible homes and implementation timetable remain subject to confirmation.
Hopkins Homes’ participation in the scheme has not been confirmed. Hopkins Homes is not a mortgage adviser and cannot provide financial advice. Buyers should speak to an independent mortgage adviser and obtain independent legal advice before making any financial commitment.
Deposit Contribution is available on selected Hopkins homes and developments only and is subject to lender criteria and the full terms of the offer. It cannot be used in conjunction with another Hopkins Homes offer.
Promotions are subject to change and can be withdrawn at any time.